Pension triple lock should be scrapped, say MPs

The state pension triple lock which protects the income of pensioners should be abolished, according to the Work and Pensions Committee.

The MPs argue that retaining the triple lock beyond 2020 would cost a greater share of national income.

The current system, which runs until 2020, provides state pension increases each year by inflation, the increase in average earnings or 2.5% (whichever is higher).

The committee has proposed a simpler system for the new state pension which would be linked to average earnings.

The report also suggests that the system should protect pensioners when earnings fall behind inflation.

Frank Field, chair of the committee, said:

“It is time for the triple lock to be shelved. The system we propose protects pensioners and allows them to share the proceeds of future good times, but at the same time is inter-generationally fair. We call on all parties to get behind it.”